The airline — whose flight 214 crashed this month at the San Francisco airport, killing three — had said Monday it did intend to sue.

Receive the latest national-international updates in your inbox

Asiana Airlines' logo is seen at its head office in Seoul, South Korea, Sunday, July 7, 2013. The airline won't sue San Francisco TV station KTVU over the fake racist pilot names its anchor read on the air last week, a spokeswoman said Wednesday.

Updated at 5:43 AM CST on Wednesday, Jul 17, 2013

Asiana Airlines has decided not to sue a Bay Area TV station that aired bogus and racially offensive names for four pilots on its plane that crashed at the San Francisco airport earlier this month, an airline spokeswoman told CNBC on Wednesday.

"Asiana Airlines has decided to not pursue legal action as a result of a public apology by KTVU for the report," Hyomin Lee told CNBC.

KTVU came under fire on Friday after an anchor read the fake, racist pilot names — whose origins were unclear — on air, accompanied by a graphic listing them. Video of the erroneous report on the fake names immediately went viral online.